Review

Dismal Record: Venture Capital's Air Pocket

Making money by investing with venture capitalists isn't easy.

The early backers of Facebook can spend their days counting their profits while sipping Mai Tais on Maui. But they are a distinct minority. Over the past 20 years, venture capitalists have delivered subpar returns, in some years barely returning the original capital invested after their fees. And yet, investors keep pouring money into them. "The Triumph of Hope Over Experience," says a...